# Problems with the Traditional Banking System

The existing banking system and the global financial infrastructure are facing severe challenges in meeting the growing needs of users. It is a question that has been raised over and over that the current banking system can only be used by a minority. Accordingly, cryptocurrency and blockchain technology, which are not only convenient for users but also easy and convenient for many users, are rapidly emerging as a global financial infrastructure. 

We are going to look at the problems that traditional banks have.

1. **Ambiguity**

   Our existing banking system is quite ambiguous, complex and it is also very over-Priced. Transferring money from one country to another has huge processing methods which make it costlier and also time-consuming.<br>
2. **Centralized Banking**

   In the growing economical world, users’ perspective towards the centralized banking system is slowly changing which calls for the need for a decentralized banking process. Which is why now businesses are slowly opting for banks with a decentralized process. The centralized method is very inflexible for the customers because the entire control lies with the senior management and is not customer-friendly. The most common cause of approaching banks for a commoner is to borrow money, for which the decentralized banking process will be a faster and better option.<br>
3. **Crypto-Friendliness**

   Money is taking different forms today, and one among them is cryptocurrencies. Gradually, cryptocurrencies are spreading their wings beyond their crypto community and it is getting into the lives of a commoner, but the problem is that we do not have crypto-friendly banks that can provide a single banking account for handling both the traditional money and the cryptocurrency. There is a lack of infrastructure to support financial transactions between crypto and fiat currencies.<br>
4. **Multi-Currency Handling**

   There is a lack of knowledge to handle digital assets. There is also not enough security for our digital assets, which makes people hesitant to opt for them. Also, we do not have a structured and rationalized process for converting our digital assets and cryptocurrencies.